Year-end Sale % OFF 
Abstract
When making investment decisions, people heavily rely on price charts displaying the past performance of an asset. Price charts can come with any time frame, which might be strategically chosen by the provider. We analyze the impact of the time frame on retail investor behavior, particularly trading activity and risk-taking in a controlled experiment with 1,041 retail investors. We find that shorter time frames are associated with more trading activity, resulting in higher transaction fees and welfare losses for investors. The time frame has no effect on average risk-taking, and thereby we question the transferability of myopic loss aversion findings to real-world investment settings.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
